I am often asked by those looking to invest in the LBI real estate market if a summer rental property is profitable. While there is not a one size fits all answer to this question, under the right conditions, they can be very profitable in a variety of ways. When looking to invest in the LBI real estate market, a buyer should consider the investment in two ways: rental income and market appreciation. Before we go any further, I must say that all investments should be discussed with a financial planner, accountant, etc. to see what makes the most sense for you. When looking to buy a rental property in the LBI real estate market, there are a few variables that buyers should review:
When the time comes to sell your home on Long Beach Island, you want to make sure you get the most money possible. While there are constants in real estate that will probably never change, selling a home in the digital age requires an understanding of technology and how best to present a home online. The vast majority of home buyers begin their search online. Therefore, your home must stand out and draw a buyer’s attention. I mentioned a few constants in real estate, for example setting the right price, and it is essential to note that ignoring these points will ultimately hurt you in the sale of a home no matter how much technology is applied to the transaction. So, what matters in the digital age?
When looking to own and manage a rental investment property in the LBI real estate market, buyers have a host of management options available that can make the process far more manageable. While the tried and true real estate agencies can and do still have an enduring place in the market, there are ways to use the internet to not only manage the rental but also increase the bookings and profitably of the investment. Some of the best technologies on the market currently are:
Large national websites like vrbo.com and airbnb.com
Stability was the key word for the Long Beach Island NJ real estate market in 2019. While the average price of a single family home and condo increased slightly and there were a few more closed transactions in 2019 compared to 2018, stability is the best term for the LBI market in 2019. Perhaps in no other segment of the LBI real estate market is this more evident than in the bayside market. 2019 and 2018 saw the exact same number of closed single family homes in both years! The bayside was also the most active area of Long Beach Island in both years. Sales in 2019 were as follows:
There were 223 sold single family homes on the oceanside in 2019
The average price of a home was $767,254
While the same number of homes sold in 2018 and 2019, the average price of a home was lower in 2019.
For most buyers in the Long Beach Island real estate market, a mortgage is a necessary part of the transaction. While cash deals are prevalent, may buyers elect to obtain a mortgage even if it is not needed thanks to lower interest rates and the potential for stronger returns in other investments. Therefore, understanding LBI Real Estate Monthly Mortgage Payments is an essential step to buying a home in the LBI real estate market and one that can have long term implications on the cost of owning a home. A mortgage payment typically is comprised of the following items, and we will go into how these can impact a home purchase:
The Long Beach Island real estate market had good activity overall in 2019. As usual, single family home sales dominated the market as a whole. The average price of a home was a little higher in 2019 as compared to 2017 (the year with the most transactions) and 2018. While the general market saw a lot of activity, that increase was not spread evenly amongst all locations. There were some areas that saw drops in the numbers of home sold and others, like the oceanblock, that saw a large increase. Today we are going to look at single family oceanside transactions to see how that facet of the market fared in 2019.
There were 100 sold single family homes on the oceanside in 2019
The average price of a home was $938,148
The number of homes sold and the average price were both lower in 2019 when compared to 2018
The Long Beach Island real estate market had a strong year in 2019. The average price of a home was slightly higher than 2018 and there were more transactions in 2019 than 2018. That said, not all areas of the LBI real estate market performed the same and different property locations saw rather significant differences between 2018 and 2019. For example, oceanfront homes saw a much higher average transaction price but far fewer transactions between the two years. So, how did the oceanblock real estate market perform in 2019?
There were 119 sold single family homes on the oceanblock in 209
The average price of a home was $1,230,591
This represents the most transactions and the highest price over the last 5 year period.